Landmarks & Bintan Casino

Landmarks down 0.5% at MYR1.94 in thin volume but could rebound firmly in coming days; CEO and COO Lim Boon Soon says at AGM, masterplan for Bintan project in Indonesia expected to be completed by 4Q07. Project expected to contribute positively to Landmark's revenue from 2008. Last month, Landmarks bought 64.5% stake in Bintan Treasure Bay which owns 342 hectare leasehold land in Bintan. Lim declined to disclose any details on the planned development but talk rife company plans resort development with possibility of including a casino. Stock faces resistance at MYR2 (100-day moving average), then MYR2.20 (30-day moving average). Should find support at MYR1.94 (recent lows).

TM & MiTV

RHB Research doesn't expect "material earnings enhancement" from Telekom's domestic roaming agreement with MiTV, so keeps on Market Perform call. Notes that no roaming charges are disclosed, but believes the negotiated rate between the two "may prove noncompetitive" to unlisted operator MiTV. Doesn't expect MiTV to be credible new telco entrant as it doesn't have proven track record and is up against sector's strong, entrenched players. Keeps fair value at MYR11.57 on FY08 19.2X P/E. Shares down 1% at MYR10.20.

Sell Talam On Rally Based On Charts - TA

TA Securities says sell Talam on rally based on charts; "Talam shares fell from a double-top in end-March to rebuild support above 25 sen, which defined the lower band of a wide uptrend channel from September 2006," TA says. Yesterday's sharp rally has immediate upside potential to 36 sen, with double-top near 39 sen acting as stronger hurdle. "However, a profit-taking correction is expected soon, given the daily stochastics which is moving into the overbought zone on further strength," TA says; tips sustainable support at 28 sen. Stock down 7.1% at 33 sen in active trade.

S&P Keeps Marco As Strong Sell, 14 Sen Target

S&P Equity Research keeps Marco as Strong Sell, with 14 sen target after company posts in-line 1Q net profit of MYR0.8 million (vs MYR0.68 million in 1Q 2006); thus keeps 2007 net profit forecast at MYR3.2 million, 2008 forecast at MYR3.3 million. "Given the absence of other bottom-line contributors (such as property development), earnings growth from its core timepiece distribution business will be unexciting," S&P says; this can't justify estimated current year PER of about 40X, suggests stretched valuation. Stock down 2.7% at 18 sen in moderate trade.

Sell Land & General On Rally,Based On Charts -TA

TA Securities says sell Land & General on rally, based on charts; L&G shares surged above April 11's peak of 52.5 sen yesterday and overbought reading on daily stochastics should attract profit-taking and selling-on-rally interest; tips immediate support at 45 sen. Stock down 3.8% at 51 sen in active trade midday.

HLG Starts Carotech As Buy, With 90 Sen Target

HLG Research starts coverage on Carotech with Buy call, target is 90 sen on 18X 2008 earnings. Tips 40% CAGR FY06-09 EPS growth on company's plant expansion (120,000 metric ton-capacity by January 2008 vs 16,000 metric tons now), which "will more than compensate for lower margins from record high CPO prices". While shares have performed poorly relative to KLCI, CPO futures (inverse relationship with CPO prices), HLG thinks CPO prices have peaked at MYR2,300-2,400/metric ton and are biased downward due to rising supply and slow biodiesel demand growth. Shares down 0.7% at 69 sen midday.

MIMB Has Strong Buy On Bonia Based On Charts

MIMB Research has Strong Buy on leather goods and apparel maker Bonia Corp based on charts; says stock's recent fall to MYR1.02 low with oversold signals (RSI at 44.9 at lowest point) suggests significant bullish indicators are in place.

PSCI UP; PN17 Exit Hopes, Turnaround Play

PSC Industries UP on hopes company may soon exit PN17, a classification for financially troubled entities; some punters are buying the share because they feel that the company has strong turnaround potential; this, after company last week signed underwriting pact for rights issue which will raise MYR69.9 million for working capital; the rights issue represents the final phase of PSC's regularization plan which also includes capital reduction, debt settlement. Company says plan due to completed in 3Q, will also see company's exit from PN17.

OSK Starts YTL Cement With Trading Buy

OSK Investment starts YTL Cement with Trading Buy, DCF-based fair value of MYR6.30; analyst says company has proven itself to be one of strongest cement players in industry in terms of earnings margins, operational efficiency. "Considering that prospects are improving for the cement industry in Malaysia with the revival of the construction sector and the automatic pricing mechanism coming into play, we see that YTL Cement is without doubt, going to perform in term of earnings," says analyst Arhnue Tan. But imputing heavy dilutive effect from ICULS, says group has already reached its peak pricing with FY07 PE hovering at 26.9X level. Tips accumulating at lower levels. YTL Cement down 4.1% at MYR5.80

Citi Keeps AirAsia As Sell, MYR1.66 Target

Citigroup keeps AirAsia as Sell, target at MYR1.66 as "risks are on the downside", given rich valuations (22X PER, which is 23% premium to global sector peers, 24% premium to Malaysian market), 49% foreign shareholding. Despite significant market share gains in Malaysia (now 50% vs 30% in FY06), Citi concerned about slowing growth in overseas JVs - Thai and Indonesia AirAsia. Expects AirAsia to meet FY07 recurring net profit of MYR198 million or reported earnings of MYR400 million if allowed to include deferred tax credits in audited accounts. Stock down 0.5% at MYR1.95 in moderate trade midday

Hektar A Strong Buy Based On Charts - MIMB

MIMB Research says Hektar Real Estate Investment Trust a Strong Buy based on charts; stock's fall to MYR1.00 low recently with oversold signals (RSI 44.4 at lowest point) indicates significant bullish indicators in place. Suggests stop-loss at MYR1.31, says sell and take profits from MYR1.65 to MYR1.81. Stock +5.5% at MYR1.53 in moderate trade midday.

TA Keeps SapCrest As Sell, MYR1.33 Target

TA Securities keeps SapuraCrest Petroleum as Sell, targets MYR1.33 as stock "pricey." Comes after company reported 1Q core net profit of MYR4.1 million (after excluding FX gain of MYR6.4 million), which below expectations, down 30% on-year despite 21% rise in revenue; cuts FY08 profit forecast 8.7% to MYR62.8 million after trimming pretax profit margin assumption for drilling, marine division. Stock +1.5% at MYR1.97 in active trade midday.

Buy ECM For MYR1.40 Medium Term Target

TA Securities says Buy on ECM-Libra based on charts for medium-term upside towards MYR1.40 and higher; "ECM shares had completed a full recovery from the March sell-off, with a base building phase above MYR1 in May anchoring the recent share price upswing," TA says; decisive breakout above MYR1.30 will enhance upside momentum towards MYR1.40 and beyond. Stock down 2.3% at MYR1.23 in active trade.

HELLO

S&P Ups Symphony To Hold, Keeps 37 Sen Target

S&P Equity Research ups Symphony House to Hold from Sell, keeps 37 sen target after recent share price decline; but cuts 2007 net profit forecast 50.5% to MYR6.6 million, cuts 2008 by 39.7% to factor in sale of 3 units in I.T. services, corporate advisory. "The disposal can reduce earnings volatility in the future, and allow the company to focus on the more profitable BPO (business process outsourcing) businesses," S&P says; expects company to have recurring earnings CAGR estimated at 19% for 2007-2010, vs 28% decline for 2004-2007. "Given a dividend yield of 3.7% and an improving earnings prospect, we believe further downside in the stock is limited," S&P says. Stock down 1.3% at 39 sen in active trade midday.

CIMB Keeps Buy Call On MRCB, Target MYR3.15

CIMB keeps MRCB on Buy with MYR3.15 target price based on RNAV; says company may emerge as best play for exposure to mega projects planned in Penang including much talked about new MYR1.2 billion international airport. Over weekend, The Edge reported MRCB planning to buy 30% stake in Equine Capital which mooted airport project some years ago. MRCB could also add MYR1.2 billion Penang Monorail project and MYR1 billion Penang Outer Ring Road (PORR). Orderbook could potentially surge to MYR5.1 billion. MRCB flat at MYR2.51 in heavy volume but could attract buying attention in coming weeks. Equine Capital +1.3% at MYR3.10.

CS Starts Memstech At Outperform,Target Of MYR1.06

Credit Suisse starts Memstech at Outperform, target price of MYR1.06. "Memstech has started supplying a major MNC hand-phone manufacturer with its silicon microphone, which could lead to exponential earnings growth." Says catalyst: release of its 4Q FY07 results at end of September, which should show first evidence of jump in silicon microphone sales, also listing transfer from MESDAQ to Main Board "could be another major catalyst in 1Q08." Stock +25.8% at 75 sen.

Bomoh's Squat - Tibetan Dzi Bead

The controversy surrounding dZi beads stems from their mysterious origins more than a millenium ago and also from the beautiful legends that have been passed down about them over the centuries in Tibet, that ancient kingdom in the snow.

Stories of stones dropping from Heaven can be traced back to a Buddhist sutra that records a Himalayan legend about an evil spirit who would from time to time descend to the world of men to cause plagues and disasters. Fortunately, a benevolent god took pity on the humans and cultivated its powers in Heaven, causing the beads to fall from Heaven. Those whose good fate it was to obtain one would thus be protected from misfortunes and all kinds of evil. Different variations on this same basic legend are found all over Tibet.

Whether dZi beads are spiritual bugs or stones fallen from Heaven, they bring good karma to those who own them. Since having a dZi bead can bring good fortune, health and wealth, affluent Tibetans have long been avid collectors of these legendary jewels. As long as 1300 years ago, The New History of the Tang Dynasty recorded that Tibetans liked to wear dZi beads, "a single one of which could be traded for a horse." From this you can see the high value that was placed on them.

Five Eyed Five directional wealth gods – accumulate wealth / goodluck and material gain / gain useful people, more money, valuables & food/ good fortune / fulfill success and wishes.

Sell H-Displays On Rally, MYR1.05 Floor - TA

TA Securities says Sell H-Displays on rally, based on charts; tips support at MYR1.05. "H-Displays' daily stochastics are fast approaching overbought region," TA says; further rally towards upper band of up-channel from March 2007 and upper Fibonacci Fan Line near MYR1.30 should encounter keen profit-taking and selling. Stock +2.6% at MYR1.20 in active trade.

Buy Stemlife For MYR3.50 M/T Target - TA

TA Securities says Buy Stemlife based on charts for medium-term upside toward MYR3.50; says stock has built higher support platform at MYR2.90 following late May rebound from base building above MYR2.60 support, which reinforced uptrend channel from January 2007. Stock down 1.2% at MYR3.18 in moderate trade midday.

CIMB Keeps EONCap As Outperform, MYR8.60 Tgt

CIMB Securities keeps EON Capital as Outperform, MYR8.60 target based 1.9X price-to-book; says among smaller banks, EONCap has highest exposure to construction loan segment (7.4% of loan portfolio), with 6.2% market share of construction loans; thus bank will be prime beneficiary of 9 Malaysia Plan or 9MP lending; also an attractive takeover target. "Potential re-rating catalysts are 9MP exposure, M&A newsflow, and potential entry of a strategic shareholder," CIMB says. Stock flat at MYR6.55 in moderate trade midday.

K&N Keeps Buy On MMC With MYR9.40 Target

Kenanga keeps Buy call on MMC Corp.with MYR9.40 target based on 18.9X PE on EPS of 43 sen; new construction contracts, further disposal of non-core assets and full recognition of independent power producer Malakoff's earnings in FY08 cited for strong earnings growth. Also, 50:50 JV with Gamuda to build MYR10 billion electrified double-tracking project should add 17 sen to current revised NAV of MYR9.40. MMC last down 1.3% at MYR7.85

PNB's Plantation Cos Stk Buy Puzzles Analysts

Recent moves by Permodalan Nasional Berhad (PNB) to increase its stake in Synergy Drive questioned by investment fraternity, relating to PNB's motive and impact on market liberalization. Analysts estimate PNB's purchases costing MYR2 billion, have pushed up shares of Sime Darby, Kumpulan Guthrie and Golden Hope (all being merged under Synergy Drive); could mean Synergy Drive would be incurring higher transaction costs of MYR45 billion from MYR31 billion, possibly reducing ROE to 7% from 9%. Move could trigger downward rerating of share prices by analysts, says The Star. Other negative effects include reduction in funds for future expansion if high dividends were paid or shares bought back to top up shareholders' funds, and efforts to boost short-term profit adversely affecting its future prospects. Sime Darby last down 0.5% at MYR9.95, Guthrie down 1.5% at MYR6.70, GHope down 0.6% at MYR8.50.

S&P Research Ups Degem To Strong Buy, Keeps Target

S&P Equity Research ups Degem (7119.KU) to Strong Buy from Buy on recent share price weakness, keeps MYR1.43 target; jeweler reported above-expectation 1Q net profit of MYR3.5 million (+55% on-year) on increased sales, better margins. S&P ups FY07 net profit forecast 12.2% to MYR12.9 million; "we remain optimistic on Degem's outlook." Move to set up new stores in Malaysia, Singapore, Vietnam next 2 years should boost revenue, profits. Stock +1.7% at MYR1.22 yesterday.